Pickle45
Returning Member

Form1041 K-1 Foreign Tax Credit - Accrued Tax

I have a Schedule K-1 1041 for a Trust. All of the income is foreign with taxes paid. When entering all of the information for the K-1, I put B - Foreign taxes under "Enter Other Codes" and the corresponding amount under "Enter Amount." For the record B is the only code in Box 14.

 

I then come to the page with the following:

Total Applicable Losses

Foreign Taxes Accrued

Reduction in Taxes Available for Credit

 

Assuming I leave Total Applicable Losses & Reduction in Taxes Available for Credit blank since I do not see these mentioned on my K-1. However, do I need to put an amount in Foreign Taxes Accrued? Is this the same amount as the Foreign Taxes Paid? I'm thinking that I should leave all three of these boxes blank.

 

I notice that this makes a difference in an Excess Foreign Tax Credit which is something that's completely new to me. When adding the paid tax number to Foreign Taxes Accrued I get a significantly larger Excess Foreign Tax Credit that can only be carried back a year as opposed to a smaller Excess Foreign Tax Credit that can be applied to next year when leaving the Accrued amount box blank.

 

Can someone please advise on the correct way to navigate this?